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Tea lounge biz to bolster Wagh Bakri brand equity


Ahmedabad: The Gujarat Tea Processors & Packers Ltd, the maker of Wagh Bakri tea, has been brewing its tea lounge business for nearly a decade now Began as the concept of Wagh Bakri Tea Lounge in 2007, the packet tea giant’s brand positioning is currently focused on these urban tea joints.

With the first one unveiled at Vile Parle, Mumbai, on the request of the Gujarati community there, the group has set up nine such lounges in prime locations of New Delhi, Maharashtra, Gujarat and Goa. All the lounges are managed by the hospitality company Sodexo.

Speaking to TOI, Kaushal Vasudeva, general manager of the retail chain said the average number of bills collected by the lounges at the locations like Connaught Place and Vile Parle is around 150 per day. “People in the age group of 18-35 constitute around 60% of the crowd. The lounges also keep a varied stock of board games to entertain kids who accompany their parents,” Vasudeva added.

Regarding the sales of packaged pro-ducts, he said, “All our Wagh Bakri packaged product ranges are available at the tea lounges. Almost 30% of our sales at the lounge are of the packaged products and many people come here just to buy them.”

Wagh Bakri group has set up nine lounges in New Delhi, Maharashtra, Gujarat and Goa.

On their plans in the eastern part of the country, he said, “We would love to have stores there. But our strategy is to build a brand recognition among the consumers first and then venture into the market with the lounge.” The group is currently consolidating its presence in the western and northern regions, with Pune and highways near Delhi being the next focus areas.

Vasudeva added that a typical investment on each store is around Rs 3,500-Rs 4,500 per sq ft, which has a break-even of five years on an average. Thus, choosing a well frequented location is also very important for the business.

Source :Times Of India

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